Crypto decouples from equities, cites CLARITY Act

Bitcoin and other crypto assets have been trading out of step with equities, and traders are increasingly tying that divergence to liquidity conditions inside crypto and to unfinished U.S. legislation. Posts circulating on X on Tuesday described a market in which stocks were benefiting from broader macro optimism while digital assets were losing momentum, with some participants citing declining offshore and Korean centralized-exchange flows and uncertainty around the CLARITY Act. The social commentary reflects a broader market debate rather than an official market call, but the underlying policy issue is real. Congress.gov shows the Digital Asset Market Clarity Act of 2025, H.R. 3633, passed the House on July 17, 2025 by a 294-134 vote and was referred to the Senate Banking, Housing, and Urban Affairs Committee on Sept. 18, 2025. ### Why are traders saying crypto is decoupling from equities? CryptoQuant analyst Darkfost wrote on March 21 that Bitcoin’s relationship with the S&P 500 had “shifted significantly since October 2025,” with the 30-day correlation turning negative. Darkfost said the break followed a large liquidation event on Oct. 10-11, 2025 that wiped out about $19 billion in leveraged positions and reduced open interest by around 70,000 BTC. (congress.gov) CryptoQuant said weaker leverage recovery, softer liquidity and ETF outflows helped create a market in which equities were supported by earnings while crypto was being driven more by internal liquidity and positioning. That does not prove a permanent separation, but it does provide a named analytical basis for the “decoupling” language now appearing in trading commentary. (cryptoquant.com) ### What does the CLARITY Act actually do? The Congressional Research Service said H.R. 3633 would give the Commodity Futures Trading Commission a central role in regulating “digital commodities” and related intermediaries, while preserving parts of Securities and Exchange Commission authority over some primary-market crypto transactions. CRS said the bill would define a digital commodity as a digital asset whose value is “intrinsically linked” to the use of the blockchain, and that the term would exclude securities, derivatives and stablecoins. (cryptoquant.com) CRS also said the bill creates a framework around “mature blockchains,” including standards tied to control and ownership concentration, and would allow issuers to certify maturity to the SEC. For offerings relying on the bill’s exemption, issuers would face a $75 million cap over 12 months and additional disclosure obligations. ### Why would an unfinished bill affect institutional allocation now? (congress.gov) French Hill, the Arkansas Republican who sponsored the bill, said on July 17, 2025 that the House had passed legislation establishing “clear rules of the road” for digital assets and that he would continue working with Senate colleagues to enact it. That language is one reason market participants watch the bill as a possible marker for when U.S. institutions may get a firmer compliance framework. (congress.gov) The unresolved part is timing. Congress.gov lists the latest action on the bill as its referral to the Senate Banking Committee on Sept. 18, 2025. As of the latest Congress.gov entry available Tuesday, the measure had not advanced to enactment. That leaves traders parsing not only whether the bill would help, but when any final framework might emerge and what the Senate might change. (financialservices.house.gov) ### Why are offshore and Korean flows part of this discussion? Market participants on X have linked fading crypto momentum to weaker activity on offshore venues and in South Korea, long a significant source of retail trading volume. Those flow claims were part of Tuesday’s social discussion, but the broader point is consistent with the liquidity-based explanation cited by CryptoQuant: when leverage, exchange activity and ETF demand weaken at the same time, crypto can stop moving in tandem with stocks. (congress.gov) The next concrete checkpoint is in Washington, not on social media. Congress.gov’s bill page for H.R. 3633 remains the clearest public tracker for Senate movement, committee action and any eventual floor schedule on the CLARITY Act. (congress.gov) (cryptoquant.com)